Written by Laura Wise. Are you ready to buy that first house?  Refinance the one you own to a better interest rate? Or even move to a larger home? Credit plays a role in everything from buying a home, to signing up for cell phone service or utilities, to getting car insurance. A credit score is a snapshot taken by the three leading credit bureaus, TransUnion, Equifax and Experian, that allows lenders to determine whether or not you will be extended credit, the amount of credit and even the terms (interest rate, loan amount, repayment schedule). 
 
While I am not a credit counselor, I can give you a little bit of information about credit scores and some basic steps to keep them healthy, which are important for you to know when applying for home financing. So you can obtain the financing you need when we find you the perfect house.
 
What is a credit score and how is it calculated?  A credit score is a number between 300 and 850 that is used to predict how likely you are to pay your bills. Many of the companies with whom you have a loan or a line of credit report back to the three credit bureaus information such as whether you pay on time, your credit amount, etc. Your credit score is calculated from this personal financial information. The higher your credit score, the better the credit terms you will receive. The lower your score, the higher the interest rates you may have to pay. Generally, scores over 700 are considered excellent while scores below 600 are considered poor. I know what do they consider those between 300 and 599 …. Yikes.
 
Remember, you are eligible for one free credit report per year from each of the three credit reporting agencies. Take advantage of this opportunity to monitor your credit report and ensure there are no mistakes or surprises with your credit, when it is time to apply for financing of any kind.
 
If your credit score is not what you would hope, You can improve it.* 
Although there are no quick fixes when it comes to improving your credit score, you can take steps to rebuild and maintain your score over time:

1. Continue paying your bills on time — your payment history matters.
2. Don’t max out your cards or even run the balances up high.
3. Hold off on applying for new credit or cancelling an old card, since length of credit helps.
4. Pay down high balances, but don’t just transfer debts among several lenders.
5. Settle any collections or past due accounts that you possibly can.
6. Dispute and resolve any inaccurate items in your credit report. The last two years of your credit history are the most important.

Credit scores affect your life — beyond just mortgage interest rates. 
Credit scores are often used in determining prices for auto and homeowners insurance. Employers have also begun using the scores as part of background checks when making hiring decisions. The practice of using credit scores in nontraditional ways is expanding. It’s more important than ever to educate yourself about credit.

* I am not a credit counselor or financial advisor this information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation or eligibility to secure a loan

Written by Scott Bird.I’ll make a very long story as short as possible. As you know, this house was reported occupied and is fully fenced.

I made the risky attempt to open the gates and walk to the house after being warned by the neighbors of the borrower’s/occupant’s vicious dogs. Nobody has seen movement at this house for weeks. I’ve also never seen any changes to the home since I’ve been checking the occupancy. So I unlock the gate listening for any movement and all I hear is water dripping. The house is about 50 yards from the fence so if there is a dog coming, there is no way to avoid a dog bite in the butt because I’m not as fast as I once was to outrun a dog. I finally got to the house and stepped over all the clutter on the porch and ring the door bell. I hear nothing so I knock. Then I hear some movement inside by the door and know that someone is watching me through the eye hole in the door. After another minute I ring the door bell again, trying to be as polite as possible…then I see two dogs running to the front yard from the back of the house (I think the SOB let his dogs out to feed me for breakfast).

As you can imagine my heart rate QUADRUPLED, and I just stood there with fear in my eyes. Luckily the dogs didn’t see me and headed for the front fence. I was hoping that they would leave the property because I left the gate open in case I need a quick exit. Well…dah. I was 50 yards away so it wasn’t going to make any difference. All I could do is stand on the front porch motionless. I range the door bell too about 30 times, hoping the guy inside would have some mercy on me…NOPE. He’s probably inside sitting back enjoying the show. Then, one of the dogs spotted me…probably smelt the urine running down my leg (just kidding, no I did not wet my pants) and slowly walked towards me growling. He was the pit bull type which made it worse. Then the other dog, more of a border collie type saw me. He stared for a minute and then was quicker to approach me than the other, LUCKILY. Then a third dog came out from the back of the house. Now what? Can this madness get any worse? I had no idea what to expect or what I was going to do. I was going to call someone but that wasn’t going to keep me alive. It was just going to get someone else out here to clean up the mess.

And then God answered my prayers and the second dog approached and started licking me and jumping up on me. Usually I don’t like dogs jumping on my clean clothes but in this case, I really didn’t care. The other two dogs started in on the action and we had a very good moment…I could have cried and I walked slowly away from the home and out the gate. I’M ALIVE!!!!!

Written By June Holder

 It is always a fun festive feel to hang lights to brighten the holidays for those crisp evenings this time of year.  In planning which ones to invest in and installation, consider these things:

• How much light you want to bring in—size of bulbs.
• Purchase lights that can be exposed to moisture—rain/snow.
• Connectors need to be where air can circulate to dry out, allowing for water to drain away safely.
• Cover ends joining together with electrical tape or encase with plastic freezer bags for protection.
• Electrical tape or plastic zip ties can hold connectors above ground away from runoff by attaching to branches or handy spot.
• Plastic zip ties can be spaced to prevent the extreme wind from wear and tear, keeping bulbs from banging into things.
• A ground-fault circuit interrupter (GFI) prevents shorts and shocks, and is a safety device for precaution for everyone. 
• Stakes are often needed to hold down displays – driving into the ground the entire length 6-8” will help keep the wind in check.

These are just a few ideas to help keep your special decorations from being torn and scattered throughout the neighborhood.  Using precautions like this, hopefully we will enjoy a safe, joyful holiday season. 

Stratum Real Estate would like to thank everyone who has allowed us to be a part of your lives.  We are better people because of knowing you, thank you.

Written by Laura Wise

An appraisal is an opinion or estimate on the value of real property. This value is generally expressed as Market Value. Obtaining an appraisal is an important part of the process it will determine the actual market value of a home being purchased or refinanced. The appraisal allows the lender to determine if the value of the home is sufficient to support the loan amount requested. The appraised value will also ensure that a home buyer is not paying more than a home is actually worth.

Appraisal requirements include:

• Interior and exterior inspection of the subject property
• Comparable properties along with a street map that shows the location of the subject property and of all comparable properties that the appraiser used.
• An outline of the property dimensions
• Pictures of the subject property and comparable sales used

The appraisal report is broken up into sections. Some of the more common sections include:

• Subject: Basic information such as the address, legal description, owner’s and/or borrower’s names. The client is also identified here.
• Contract: Information on the contract for sale is entered here for appraisals in which a change of ownership is about to occur.
• Neighborhood: Detailed information related to the neighborhood such as boundaries, characteristics, trends, description and conditions.
• Site: Data on the size, shape, zoning and access to utilities as well as FEMA flood-zone information.
• Improvements: Physical characteristics of the property such as age, materials, and condition.
• Sales comparison approach: This is where the property being appraised is compared to recent sales of other properties.

There are three ways to approach an appraisal. These are all used to determine the final, “reconciled” value.

Sales Comparison Approach
The purpose of the sales comparison approach is to derive a value based on recent sales prices of similar properties, called comparables. The method assumes that the typical buyer pays no more for a property than the cost of purchasing an identical property.

Data is collected on recent sales of comparables. Because comparables may not be identical to the home that is the subject of their appraisal, some price adjustment is necessary. To minimize the amount of adjustment required, comparables should be closely similar to the subject in size, age, proximity and condition.

Cost Approach
The purpose of the cost approach is to indicate value based on the cost to replace the property, using current materials and methods. It is not necessary to simulate production of an exact replica. Any depreciation on the subject property is estimated and subtracted from the new reproduction cost. Depreciation includes physical wear, needed repair and replacement of components, outmoded design and materials, and incompatibility with surroundings.

Income Approach
This approach assumes the property is purchased for its productivity as an investment. The appraiser will look at market level rents and operating expense ratios to determine the value. This approach can be used for investment properties as well as owner-occupied properties.

Let us help you evaluate your home at no cost to you. We can help you understand better how to get a safe and fair appraisal.

Written by David Crowther  I know that we all seem to be cash poor, and in an unstable economy the reasons to keep what little cash you do have seem to get bigger with each nightly news broadcast. But there are some very compelling reasons to get that cash out of your account and start using it now.

The housing market shows signs of strengthening and the amount of fire-sales is decreasing quickly. What this means for people who have some cash on hand is that the sweetest deals are going away. They always exist, but the large pool of them that has been available is drying up rapidly. When the pool gets smaller, the deals get harder to find and the competition goes way up.

Investing in real estate is a major buffer against inflation, and bank insecurity. Property value goes up with inflation, as do rents. Plus with the deals still out there you can make a return larger than what the stock market has ever been able to produce long-term. Real Estate, done correctly, is a much better investment for cash than a bond or stock has ever been.

Fast closings are a very nice perk about cash closings. Taking the loan out of real estate also takes the complexity out; you only have a few simple documents to sign and you’re done. A recent closing of mine was literally 10 minutes and half of that was getting a bottled water and finding a pen, and the client understood what those few papers meant. Total closing cost = $511.00. Compare that to a closing with a loan and your jaw will drop.
For the above reason I hope you’ll consider taking that nest egg out and putting to use in a way that will benefit you for years to come. Cash is always good to have on hand, but it is even better when used correctly.